Journal of Risk and Financial Management : 2024 - Tax Tightrope: The Perils of Foreign Ownership, Executive Incentives and Transfer Pricing in Indonesian Banking

Prof. Dr. Farha, Abdol Ghapar (2024) Journal of Risk and Financial Management : 2024 - Tax Tightrope: The Perils of Foreign Ownership, Executive Incentives and Transfer Pricing in Indonesian Banking. Journal of Risk and Financial Management, 17 (1). pp. 1-18. ISSN 1911-8074

Text 4. Tax Tightrope_ The Perils of Foreign Ownership, Executive Incentives and Transfer Pricing in Indonesian Banking.pdf Download (1MB)

Abstract

Despite being a crucial source of funding for the government, tax revenue collection in Indonesia has yet to reach its ideal and satisfying level for the economy. Therefore, this study explores the impact of executive incentives, foreign ownership, and transfer pricing on tax avoidance. The conventional banks of Indonesia that were listed on the Indonesia Stock Exchange (IDX) between 2015 and 2019 are the subject of this study. This study employed a purposive selection technique, with a final sample of 17 banks chosen after screening to ensure they met the requirements of having foreign ownership and not having suffered losses during the study year. The results of this study show that while CEO incentives harm tax avoidance, foreign ownership has a beneficial effect. Furthermore, tax avoidance is not significantly impacted by transfer pricing. The findings of this investigation open the door for accountable authorities in the economy.

Item Type:	Article
Uncontrolled Keywords:	tax avoidance; foreign ownership; transfer pricing; executive incentive
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Institute of Graduate Studies (IGS)
Depositing User:	Mrs Shariffah Shuhaiza Syed Mohd Nor
Date Deposited:	12 Jun 2025 08:05
Last Modified:	12 Jun 2025 08:05
URI:	http://eprints.kuptm.edu.my/id/eprint/4321

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